Kenya sugar millers urge government to tighten sugar import controls
Butali Sugar says controlled import schedules and tighter repackaging rules are needed as Kenya seeks to balance domestic production with market demand.
KENYA – Local sugar millers in Kenya have urged the government to control sugar imports, saying unplanned shipments are hurting domestic producers and farmers.
The millers made the appeal to the National Assembly Committee on Trade, Industry and Cooperatives during its inspection of sugar companies in Western Kenya.
Sanjay Patel, Butali Sugar managing director, said imported sugar should be released in batches to prevent market flooding and ensure local millers can compete fairly.
“What we produce locally cannot fully satisfy the need; however, we want good importation structures to be put in place for us to compete fairly,” Patel said.
“We should be on board in the decision-making table to give our input on when the sugar should be imported, how much should be imported and also advise on when it should be released into the market.”
Patel said imported sugar benefits a few traders while local farmers continue to face high cane production costs.
Butali Sugar management also called for restrictions on sugar repackaging, proposing that only millers should be allowed to repackage the commodity into smaller quantities. The company said the measure would improve traceability and hygiene.
At Mumias Sugar Mills, the committee was told that the recent importation of 27,000 metric tonnes of raw sugar by Mombasa Sugar Refinery had not affected the miller because the consignment was intended for industrial use.
Mumias Sugar operations manager Stephen Kihumba said imports help regulate and balance sugar prices but called for tighter controls in the sector.
National Assembly Committee on Trade, Industry and Cooperatives chairperson Bernard Shinali said the inspection followed the importation of raw sugar and was intended to assess its impact on local millers and farmers.
Sugar sector reforms
The committee’s visit comes as the government advances institutional reforms under the Sugar Act, 2024, with measures aimed at strengthening governance and management of the sector.
The Kenya Sugar Board is being constituted, with key positions, including the chairperson, National Treasury representative, Council of Governors nominee and State Department of Agriculture representative, formally appointed.
However, the process of establishing grower representation on the board has been delayed by court injunctions and petitions challenging election procedures and the definition of catchment areas.
With the legal issues before the courts, the election of growers’ representatives is expected to resume. Pending the full constitution of the board, the Ministry continues to undertake administrative functions to ensure continuity in managing the sugar industry and implementing the statutory framework.
The millers’ concerns come as Kenya balances sugar imports with domestic production while reforms under the Sugar Act, 2024 continue as government reviews import controls.
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